TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 5, 2008
COMMITTEE ON REAL ESTATE
Mr. Richard Lanyon, General Superintendent
Title
Authority to issue a two-year permit extension to LaBarge Propane, Inc. for the continued use of 1.5 acres of District land located at 15680 Canal Bank Road in Lemont, Illinois. Consideration shall be $17,752.00
Body
Dear Sir:
Reclamation Construction Corporation previously occupied approximately 52 acres of District land under a Lease that commenced May 1, 1954, and expired April 30, 2004. The leasehold site was located on the north side of the Main Channel, east and west of Lemont Road, in Lemont, Illinois, and known as Main Channel Atlas Parcel 23.01. The leasehold site contained several subleases. Reclamation Construction’s annual rent was $7,388.89 for the entire 52-acre site.
One sublease comprised a 1.5-acre portion of the site and was subleased to LaBarge Propane, Inc. to operate a propane business. The site contains one 30,000-gallon storage tank, pumps, and a raised dock with a building in which propane cylinders are filled.
The sublease commenced August 1, 1984, and expired April 30, 2004. Since the expiration of the sublease, LaBarge Propane has occupied the site under a Permit which expires October 31, 2008. LaBarge Propane has now requested an extension of its Permit until October 31, 2010. This site has not been made available for a long-term lease due to the Village of Lemont’s request to not issue leases on this property and the surrounding property until its long-term plans and goals for the area are devised. Because the District has basically placed the subject parcel and adjacent parcels on hold for several years in response to Lemont’s request, staff will request that Lemont submit such plans and a request for the site within the next year or will otherwise make the site available for leasing through the statutory leasing process.
A Phase I was conducted on its small portion of the entire site which did not reveal any environmental concerns.
LaBarge Propane currently pays an annual permit fee of $8,453.50 based upon the District’s standard formula for calculating permit fees, i.e. 10% of the site’s fair market value. The permit extension fee for the two-year period shall be $17,752.00 which represents two payments of $8,876.00 (10% of the site’s fair market value plus 5% for inflation).
It is requested that the General Superintendent recommend to the Board of Commissioners that it authorize and approve the issuance of a two-year permit extension to LaBarge Propane, Inc. on approximately 1.5 acres of District land located at 15680 Canal Bank Road in Lemont, Illinois (part of Main Channel Atlas Index Parcel 23.01) from November 1, 2008, through October 31, 2010. Consideration shall be $17,752.00.
It is also requested that the General Superintendent recommend to the Board of Commissioners that the Chairman of the Committee on Finance and the Clerk be authorized and directed to execute said permit extension after it is approved by the Attorney as to form and legality.
Requested, Frederick M. Feldman, Attorney, FMF:CL:STM:nm
Recommended, Richard Lanyon, General Superintendent
Respectfully Submitted, Terrence J. O’Brien, Chairman Committee on Real Estate Development
ORDERED passed by affirmative roll call vote of a majority of the Commissioners present this June 5, 2008. Approved, President Terrence J. O’Brien
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